A dispute over charter-vessel licensing fees between the British Virgin Islands and the U.S. Virgin Islands has intensified, with the USVI pressing for high-level talks involving federal officials in Washington.
USVI Governor Albert Bryan Jr. has proposed an Inter-Virgin Islands Council meeting in Washington during the week of October 12 to discuss the BVI’s Commercial Recreational Vessel License framework and its impact on USVI-based maritime businesses.
Under the BVI’s revised fee structure, foreign-based term-charter vessels pay $7,500 annually for up to seven entries, followed by $2,100 for each additional entry, or $24,000 for unlimited entries. Day-trip operators pay $8,500 annually, while water-taxi licences cost $2,500.
The USVI administration has raised concerns about the overall cost of operating in BVI waters, as well as entry restrictions, preauthorization requirements, vessel documentation and crew-clearance procedures. US federal agencies including the Departments of Interior, State, Homeland Security and Commerce have been involved in discussions.
The BVI, meanwhile, has maintained the licensing framework as part of its regulation of commercial activity in its waters. The revised rates were introduced after discussions between the two territories in 2025.
What it means for BVI business
The dispute has implications beyond government fees. Charter companies, marinas, restaurants, marine suppliers, water-taxi operators and other tourism businesses on both sides of the Virgin Islands depend on the movement of vessels and visitors between the territories.
The two sides are therefore facing a business and regulatory question: how can the BVI generate revenue from commercial activity in its waters while maintaining an efficient regional charter market?
As proposed October discussions approach, the outcome could have implications for the wider BVI marine-tourism and hospitality economy, particularly ahead of the next charter season.
Source: Government of the U.S. Virgin Islands, BVI Beacon, BVI News and 284 Media.
